Mr. Cooper Group Inc. (COOP): Business Model Canvas [Dec-2025 Updated]

You're looking to dissect the engine room of the nation's largest home loan servicer, and honestly, the late 2025 setup for Mr. Cooper Group Inc. is fascinating, especially with the pending Rocket Companies merger on the horizon. This isn't just about managing a $\mathbf{\$1.5}$ trillion UPB portfolio; it's a dual-engine machine balancing asset-light subservicing for institutional partners (handling $\mathbf{\$780}$ billion UPB in Q1 2025) with aggressive Direct-to-Consumer origination, which boasts an impressive $\mathbf{51\%}$ refinance recapture rate. Their $\mathbf{\$11.431}$ billion Mortgage Servicing Rights portfolio is the bedrock, but the real story is how they are using proprietary tech like AgentiQ to drive efficiency while sitting on $\mathbf{\$3.8}$ billion in liquidity. Dive below to see exactly how these nine blocks define their strategy right now-it's definitely a model built for scale and integration.

Mr. Cooper Group Inc. (COOP) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that make Mr. Cooper Group Inc. run, especially now that the big Rocket Companies deal has closed. These aren't just vendors; they are the structural supports for the nation's largest servicer.

Rocket Companies (Completed Acquisition, Q4 2025)

The acquisition by Rocket Companies closed on October 1, 2025, marking a massive shift in the homeownership services landscape. This all-stock transaction was valued at $9.4 billion in equity value, based on an 11.0x exchange ratio. The strategic goal was to integrate Rocket's origination strength with Mr. Cooper's servicing scale to drive down costs and improve client experience.

The combined entity now services nearly 10 million homeowners, which is equivalent to one in every six mortgages in America. This combination is expected to generate annual run-rate revenue and cost synergies of approximately $500 million. Post-close, Mr. Cooper and all its servicing functions are being rebranded under the Rocket umbrella.

Government-Sponsored Enterprises (GSEs) like Fannie Mae and Freddie Mac

The relationship with Fannie Mae and Freddie Mac, the Government-Sponsored Enterprises, is governed by strict counterparty concentration limits imposed by their conservator, U.S. Federal Housing. Approval for the Rocket Companies acquisition came with a stipulation that each GSE must retain strict counterparty concentration risk limits at 20% of their respective servicing market.

The scale of the combined entity is significant in this partnership space. At the end of the second quarter of 2025, the combined owned servicing portfolio in the Fannie/Freddie market was estimated at $1.260 trillion. For context, this places the new entity second only to Chase in this specific servicing volume. Over the first six months of 2025, Rocket and Mr. Cooper delivered a combined $38.42 billion in mortgages to Fannie and Freddie.

Institutional investors for subservicing and MSR fund capital

Institutional investors maintain a very strong hold on Mr. Cooper Group Inc., owning approximately 92.66% of the company's stock as of April 17, 2025. This reliance on large financial institutions extends to capital deployment, especially in the asset-light servicing space. To scale its platform further, Mr. Cooper launched a $200 million Mortgage Servicing Rights (MSR) fund with institutional partners.

The servicing portfolio itself shows a heavy reliance on subservicing, which requires less capital than owned MSRs. As of Q1 2025, the servicing portfolio was nearly evenly split, with subservicing at $780 billion in unpaid principal balance (UPB) and owned MSRs at $734 billion. The total servicing portfolio reached $1,509 billion UPB by Q2 2025.

Here's a quick look at the servicing portfolio composition as of early 2025:

Correspondent lenders for mortgage origination volume

The correspondent channel is a vital source of origination volume for Mr. Cooper Group Inc., helping to feed the servicing pipeline with newly acquired assets. The company has successfully executed a strategy to grow in this area, moving from outside the top 10 to become a top five correspondent lender nationwide.

In 2024, the correspondent channel was responsible for 65% of the company's total mortgage originations. This trend continued into 2025, with the channel generating $6.8 billion of the $9.4 billion in total funded loans during the second quarter.

• Correspondent channel funded $6.8 billion in Q2 2025.
• Correspondent share was 65% of 2024 originations.
• Mr. Cooper is now a top five correspondent lender.

Flagstar Bank (Recent Acquisition of Mortgage Operations)

Mr. Cooper finalized the acquisition of Flagstar Bank N.A.'s mortgage operations in November 2024 for approximately $1.3 billion in cash. This deal was strategic, bringing in Mortgage Servicing Rights (MSRs), advances, subservicing contracts, and Flagstar's third-party origination platform.

The integration added roughly 600,000 customers to Mr. Cooper's existing base of 5.4 million, resulting in a total customer base exceeding six million. Executives expected full integration of Flagstar's operations onto the Mr. Cooper platform by early 2025.

The Flagstar deal significantly expanded the servicing portfolio, which saw a 26% increase year-over-year leading up to the Q2 2025 results. The acquired assets contributed to the servicing portfolio reaching $1,509 billion UPB by Q2 2025.

Finance: draft pro forma combined entity customer count by end of Q4 2025 by next Tuesday.

Mr. Cooper Group Inc. (COOP) - Canvas Business Model: Key Activities

You're mapping out the core engine of Mr. Cooper Group Inc. as of late 2025. The key activities revolve around managing massive loan pools, originating new business, and deploying technology to keep costs low. Here's a breakdown of the hard numbers driving those activities.

Managing a massive mortgage servicing portfolio is the bedrock of Mr. Cooper Group Inc.'s operations. This activity generates consistent, recurring fee income.

The portfolio management includes actively managing the value of the Mortgage Servicing Rights (MSRs) asset. This requires constant hedging against interest rate movements. In Q1 2025, the impact of this management was visible through a negative $82 million mark-to-market adjustment on MSRs, though operating income remained strong.

The carrying value of the MSR asset at the end of Q1 2025 was $11,345 million, which equated to 155 bps of the MSR UPB at that time. To further scale this asset class in an asset-light manner, Mr. Cooper Group Inc. launched a $200 million MSR fund subsequent to Q2 2025.

Direct-to-Consumer (DTC) mortgage loan origination and recapture focus on retaining existing customers and capturing new ones, often through home equity products. This activity supports the servicing portfolio growth.

• Q1 2025 DTC Funded Volume: $1.9 billion (out of $8.3 billion total funded volume).
• Q2 2025 DTC Funded Volume: $2.6 billion (out of $9.4 billion total funded volume).
• Q1 2025 Overall Recapture Percentage: 19.4%.
• Q1 2025 Refinance Recapture Percentage: 50.7%.
• In Q2 2025, cash-out refinances and second liens accounted for nearly 60% of the DTC volume.

Subservicing for institutional clients is a critical, capital-light revenue stream. As of Q1 2025, this component reached $780 billion in UPB, making it the majority of the total servicing portfolio for the first time.

Developing and deploying proprietary technology is a key enabler for cost efficiency across both segments. While specific metrics for technology like AgentiQ aren't always public, the operational focus is clear:

• Q2 2025 Servicing Segment Pretax Operating Income: $332 million (consistent with Q1 2025).
• Q2 2025 Originations Segment Pretax Operating Income: $64 million.

Managing interest rate risk and MSR valuation is intertwined with the servicing portfolio activity. The company's focus on MSRs means this is a constant, high-stakes activity. The negative $82 million MSR mark-to-market in Q1 2025 is a direct financial outcome of this risk management process.

Finance: draft 13-week cash view by Friday.

Mr. Cooper Group Inc. (COOP) - Canvas Business Model: Key Resources

You're looking at the core assets Mr. Cooper Group Inc. relies on to run its massive mortgage servicing operation. Honestly, these aren't just line items; they're the engine room.

The most significant tangible asset is the Mortgage Servicing Rights (MSRs) portfolio. As of the second quarter of 2025, this portfolio had a carrying value of $11.431 billion, which is equivalent to 156 basis points of the associated unpaid principal balance (UPB) at that time. This valuation reflects market conditions, including interest rates and expected prepayment speeds.

Mr. Cooper Group Inc. maintains a strong financial footing, which is crucial in this business. Liquidity ended Q2 2025 at a robust $3.8 billion, comprised of unrestricted cash and unused lines of credit. This position was slightly lower than the prior quarter due to the timing of a bulk MSR portfolio acquisition right at quarter-end. You'll see this liquidity supports operations and potential acquisitions, like the anticipated $20 billion UPB in MSR acquisitions expected in the third quarter of 2025.

The company's scale is supported by a large, established customer base. As per the 2024 10-K, Mr. Cooper serviced 6.7 million customers. For the second quarter of 2025, the Servicing segment reported servicing 6.4 million customers. This base is a direct source of recurring servicing revenue and origination recapture opportunities. The servicing portfolio itself grew 25% year-over-year to $1,509 billion in UPB by Q2 2025.

Technology is another bedrock. Mr. Cooper Group Inc. relies on its proprietary technology platform. This includes applications like AgentiQ for internal efficiencies, as mentioned in discussions about their technology investments. Furthermore, the Xome subsidiary provides end-to-end asset marketing and disposition strategies, including a best-in-class auction platform that enables consumers and investors to buy and sell properties online. To be fair, some intellectual property rights related to Mr. Cooper's proprietary, cloud-based servicing platform were sold to Sagent, with Mr. Cooper receiving an equity stake and becoming a multi-year customer to leverage the resulting cloud-native platform.

The human capital is key to managing this complexity. The company has highly experienced servicing and technology personnel. This team drove operational improvements, like turn times measured from lock to funding being 6 days faster, even with 68% higher volumes in the DTC channel. The firm was recognized by the Great Place to Work foundation as one of the best places to work in Texas. The latest reported employee count, as of December 31, 2022, was 5,032.

Here's a quick look at some of the core financial and operational metrics underpinning these resources:

The technology assets support several key functions:

• End-to-end asset marketing and disposition via Xome.
• Proprietary auction technology for property sales execution.
• DIY sales platform for investors on the Xome marketplace.
• Cloud-native servicing platform development via Sagent partnership.

The personnel expertise is applied across critical areas:

• Seamless onboarding of new MSR portfolios.
• High-quality customer care delivery.
• Managing MSR delinquencies down to 1.0% in Q2 2025.
• Maintaining a weighted average FICO score of 737 across the MSR portfolio.

Finance: draft 13-week cash view by Friday.

Mr. Cooper Group Inc. (COOP) - Canvas Business Model: Value Propositions

You're looking at the core promises Mr. Cooper Group Inc. makes to its customers and partners right now, late in 2025, especially as the Rocket Companies merger looms. These aren't just marketing slogans; they are backed by the sheer size of their operation and recent financial performance.

Scale and cost efficiency as the nation's largest home loan servicer is the foundation. Mr. Cooper Group is the largest servicer, managing a massive book of business that drives down per-loan costs. For instance, in Q2 2025, the servicing portfolio stood at approximately $1.5 trillion in unpaid principal balance (UPB), marking a 25% year-over-year increase. This scale allows for operational leverage, with the servicing segment generating $332 million in pretax operating income in both Q1 and Q2 2025.

Technology-driven, personalized customer service for homeowners is a key differentiator, especially as they integrate new tech. They are using proprietary platforms and AI to make service better and cheaper. You see this in the operational improvements: in Q2 2025, loan turn times improved by 6 days year-over-year, even while funded volumes were up 68% higher. They are actively developing AI solutions like Agent IQ to optimize call center support.

The focus on keeping existing customers is clear with the high refinance recapture rate for existing customers. For Q1 2025, the company reported a refinance recapture rate of 51% for existing customers. This retention focus is crucial in a tight rate environment.

For institutional partners, the value is in asset-light, cost-effective subservicing. By handling the servicing for others, Mr. Cooper Group grows its fee-based revenue without tying up as much capital on its balance sheet. The subservicing balance was $780 billion in Q1 2025, slightly dipping to $778 billion by Q2 2025. To further this asset-light approach, the company launched its first Mortgage Servicing Rights (MSR) fund with $200 million in initial capital commitments.

Finally, the future value proposition centers on the end-to-end homeownership platform post-Rocket merger. Once the combination closes, anticipated in Q4 2025, the combined entity is projected to manage over $2.1 trillion in servicing UPB, servicing approximately 1 in 6 mortgages in the U.S.. This integration is expected to generate significant annual run-rate revenue and cost synergies of approximately $500 million.

Here's a quick look at the technology and service focus:

• Development of AI solutions like Agent IQ for agent support.
• Loan turn times improved by 6 days year-over-year in Q2 2025.
• Focus on home equity and cash-out refinances, which made up nearly 60% of Direct-to-Consumer (DTC) volume in Q2 2025.
• Customer FICO scores improved from 714 (Q1 2021) to 736 (Q1 2025).

Mr. Cooper Group Inc. (COOP) - Canvas Business Model: Customer Relationships

You're looking at how Mr. Cooper Group Inc. manages its massive base of homeowners and institutional partners as of late 2025. It's a blend of high-tech automation and targeted human intervention, which is key given the servicing portfolio size.

High-touch, dedicated support for distressed borrowers

The focus here is on proactive loss mitigation, even when delinquencies are low. The company's strong track record in loss mitigation skills supports this approach. As of the second quarter of 2025, the 60-day-plus delinquency rate actually decreased by 6 basis points quarter-over-quarter to just 1.0%. This suggests that the high-touch support for those facing hardship is effective, or that the underlying borrower quality is very high. The weighted average FICO score across the MSR portfolio stood at a healthy 737 in Q2 2025. The company is positioned to handle the cycle turning, as they were already focusing on loss mitigation when delinquencies were low.

Digital self-service tools for routine payment and escrow management

Mr. Cooper Group Inc. emphasizes a technology-driven model that combines self-service capabilities with dedicated care teams. The goal is to make routine tasks seamless so human agents can focus on complex issues. While specific digital adoption percentages aren't explicitly stated for late 2025, the investment in AI tools like Pyro AI, which processes over 3,000 pages per minute with over 90% accuracy for tasks like document classification and data extraction, directly supports efficiency in these administrative areas. This automation has contributed to a 20% decrease in servicing costs.

Proactive, data-driven outreach for refinance and home equity opportunities

The company uses portfolio data to identify when a customer might benefit from a new loan product. As of Q1 2025, Mr. Cooper Group Inc. noted that 21% of its customers had mortgage rates above 6%, signaling a clear opportunity for refinance outreach. Furthermore, 94% of customers have more than 20% equity in their homes, which supports demand for cash-out refinances and second liens. The origination segment funded $8.3 billion in UPB in Q1 2025, with cash-out refinances making up 46% of the direct-to-consumer funding mix. The refinance recapture rate was 69% in Q3 2024, with an overall recapture rate at 22%.

Call center support enhanced by AI-driven tools like AgentiQ for defintely better service

The integration of AgentIQ is a major component of the customer interaction strategy. This agentic framework application analyzes conversations in real time to detect customer intent and sentiment trends, providing on-screen prompts to support agents. By Q1 2025, AgentIQ was fully rolled out in the servicing call center, analyzing 400,000 calls per month. This technology is designed to free up human agents to focus on sensitive and complex customer relationships. The company has 7,900 total employees as of 2024, and tools like AgentIQ help scale the service provided by this team.

Relationship management with institutional subservicing clients

The subservicing relationship is critical, as it now forms the majority of the servicing portfolio. The company is the second largest mortgage loan subservicer in the U.S. The portfolio mix shows significant growth in this area.

Here's a look at the servicing portfolio composition as of mid-2025:

The company maintains strong relationships with agencies, investors, and regulators, which is a core mission element. The relationship management involves navigating significant client changes; for instance, a single client deboarded $12 billion in subservicing UPB in Q2 2025, with the remaining $50 billion deboarded in July. To offset this, Mr. Cooper Group Inc. announced a new subservicing client win expected to bring $40 billion UPB by year-end.

Key customer and portfolio metrics as of mid-2025:

• Servicing segment pretax operating income (Q2 2025): $332 million.
• Servicing segment operating revenue (Q2 2025): $681 million.
• Operating expenses growth (Q2 2025): 6% year-over-year.
• Customers served (Q1 2025): 6.5 million.

The definitive agreement to combine with Rocket Companies, Inc., valued at $9.4 billion in equity value, is expected to close in the fourth quarter of 2025, which will certainly reshape these client and relationship dynamics going forward.

Mr. Cooper Group Inc. (COOP) - Canvas Business Model: Channels

You're mapping out how Mr. Cooper Group Inc. gets its value proposition-mortgage origination and servicing-into the hands of customers and partners. The channel strategy is clearly dual-pronged, balancing direct relationships with a heavy reliance on third-party origination flow.

Direct-to-Consumer (DTC) channel for existing customer originations

The Direct-to-Consumer channel is a key area for capturing existing servicing customers, often referred to as recapture. In the second quarter of 2025, this channel funded $2.6 billion in unpaid principal balance (UPB). This represented a significant sequential lift, with DTC originations rising approximately 40% from the prior quarter. The focus within DTC is heavily weighted toward helping existing homeowners access capital; home equity and cash-out refinances together made up nearly 60% of the DTC funding mix for Q2 2025. Furthermore, the refinance recapture rate was 47% in Q2 2025, meaning almost half of the customers who refinanced chose Mr. Cooper Group over a competitor.

Correspondent channel for new loan acquisition

The correspondent channel is the volume engine for Mr. Cooper Group's origination segment. For the second quarter of 2025, this channel was responsible for funding $6.8 billion. This volume made the correspondent channel account for approximately 72% of the total originations for the quarter. This consistent performance has cemented Mr. Cooper Group's position as a consistent top-five player in this competitive space nationwide. The strategy here involves bringing value to sellers while fine-tuning pricing and capital market execution.

Here's a quick look at the Q2 2025 origination channel breakdown:

Online and mobile platforms for customer self-service

The digital interface is critical for managing the servicing portfolio of 6.4 million customers as of Q2 2025. While the search results don't give a specific metric for self-service adoption, operational efficiency improvements suggest strong digital enablement. Turn times, measured from loan lock to funding, improved by 6 days year-over-year in Q2 2025, even while overall volumes were 68% higher. This points to streamlined digital processing and better internal workflows.

Dedicated call centers and customer service representatives

For issues that require human intervention, dedicated resources are in place to deliver a best-in-class home loan experience. The focus here is on productivity and quality care. Management highlighted the development of AI-enabled AgentIQ solutions, which are driving productivity gains within the call center environment. The company's focus on high-quality customer care is a key factor in winning new servicing portfolio acquisitions. If onboarding takes 14+ days, churn risk rises, so speed here is defintely important.

Xome platform for transaction-based real estate services

The Xome brand serves as the channel for transaction-based real estate services, primarily focused on asset disposition for the servicing side of the business. Xome provides end-to-end asset marketing and disposition strategies. While the overall real estate transaction volume is highly variable based on economic factors, Xome's platform is positioned to handle Real Estate Owned (REO) inventory. For example, in the first quarter of 2025, sales on the Xome auction platform were 1,401 properties, down from 1,975 in Q1 2024, while inventories remained stable around 26,000 properties. The platform offers investors control over the process, including a DIY sales option that bypasses traditional agents.

• Xome provides services under the Mr. Cooper Group umbrella, alongside Rushmore Servicing.
• The platform reaches a nationwide network of more than 875,000 buyers through multichannel marketing support.
• The business model positions Xome to potentially benefit from increased foreclosure activity, acting as a countercyclical revenue stream.

Mr. Cooper Group Inc. (COOP) - Canvas Business Model: Customer Segments

You're looking at the core groups Mr. Cooper Group Inc. serves right now, based on their late 2025 positioning. It's all about managing existing loans and finding the next opportunity within that massive existing base.

The primary segment is the vast pool of US residential mortgage holders. As of mid-2025, Mr. Cooper Group Inc. managed a servicing portfolio with an aggregate unpaid principal balance (UPB) of over $1.5 trillion, which is a significant chunk of the US mortgage market.

This servicing base is segmented internally, which is key to understanding their customer focus:

• The total servicing portfolio reached $1.514 trillion in UPB as of the first quarter of 2025.
• As of Q1 2025, the portfolio was almost evenly split between owned Mortgage Servicing Rights (MSRs) at $734 billion and subservicing at $780 billion UPB.
• The company serves approximately 6.5 million customers as of Q1 2025.

A major segment involves institutional investors and financial institutions needing subservicing. This group relies on Mr. Cooper Group Inc.'s platform to handle the operational side of their mortgage assets. The subservicing portion of the portfolio stood at $780 billion UPB in Q1 2025.

Next, consider the segment of existing customers with significant home equity, which is the focus for cash-out refinances and second liens. This is where the Originations segment drives action:

The refinance opportunity segment targets customers with mortgage rates above 6%. Management noted this group as a key area for future business should rates moderate. As of Q2 2025, approximately 22% of their customers had mortgage rates above 6%. This compares to 21% reported in Q1 2025.

Finally, there's the segment of homebuyers and sellers utilizing the Xome real estate services. While specific transaction volumes aren't detailed here, the value proposition to this segment includes incentives tied to their real estate network, such as the Close & Save program offering a bonus of up to $10,000 for using preferred local agents.

Here's a quick look at the customer base focus areas:

• Servicing Portfolio UPB: Over $1.5 trillion.
• Subservicing Portfolio UPB: $780 billion.
• Refinance Target Rate Hurdle: 6% coupon rate.
• Originations Focus: Cash-out refinances at 46% of DTC volume (Q1 2025).

Finance: draft 13-week cash view by Friday.

Mr. Cooper Group Inc. (COOP) - Canvas Business Model: Cost Structure

You're looking at the cost side of Mr. Cooper Group Inc.'s business, which is heavily weighted toward managing that massive servicing portfolio. Honestly, the biggest levers here are personnel and the cost of money.

High personnel and operational costs for servicing activities are inherent because servicing means handling nearly 10 million client relationships, even with technology driving efficiency. While Mr. Cooper Group Inc. has been focused on driving down unit costs-you might recall a goal from 2023 to take out $50 million in annual operating costs from the customer call center-the sheer scale of the $1.5 trillion unpaid principal balance (UPB) serviced as of Q2 2025 demands significant operational overhead. Servicing pretax income was $332 million in Q2 2025, showing the revenue side is strong, but the underlying costs to maintain that service level are substantial.

The cost of financing the assets, especially the Mortgage Servicing Rights (MSRs), hits the bottom line hard. For the second quarter of 2025, the interest expense was reported at $217 million, which was exactly matched by interest income at $217 million in that same period. This interest expense is driven by MSR financing and the issuance of notes like the 2032 Notes and 2029 Notes. This sensitivity to interest rates means that higher rates, while sometimes slowing prepayments, increase the cost of carrying the MSR portfolio.

Technology development and maintenance expenses are a necessary counter-measure to the personnel costs. Mr. Cooper Group Inc. is investing in proprietary AI solutions, like the development of Agent IQ, specifically to optimize customer experience and drive down those unit servicing costs. These technology investments are ongoing capital outlays designed to improve operating leverage over time, which is key to maintaining profitability as the servicing portfolio grows.

You also have to account for the one-time, non-recurring expenses tied to corporate events. As Mr. Cooper Group Inc. prepared for the anticipated late 2025 closing of the merger with Rocket Companies, integration costs showed up in the GAAP expense line. Specifically, Q2 2025 included approximately $9 million in costs related to the Rocket merger and another $4 million associated with the prior Flagstar transaction. These administrative and integration costs are temporary but impact near-term reported expenses.

Finally, the Originations segment carries its own set of direct costs. While the segment generated a pretax income of $64 million in Q2 2025, the costs to generate that $9.4 billion in funded volume are significant. Loan origination costs include commissions paid to correspondent partners, who accounted for the majority of volume, plus marketing spend to drive direct-to-consumer applications. To give you a concrete example of origination friction, in 2023, the average total cost of taking out a home loan with Mr. Cooper Group Inc. was $10,138, with origination fees making up an average of $6,895 of that total.

Here's a quick look at some of those key Q2 2025 cost and expense figures:

The company's focus on efficiency is clear when you look at the expense trajectory:

• Total company-wide expenses dropped by $100 million from Q1 2025 to Q2 2025.
• Servicing portfolio UPB reached $1.509 trillion in Q2 2025, up 25% year-over-year.
• Origination funded volume increased 14% quarter-over-quarter to $9.4 billion.
• The company is developing AI solutions for call center optimization.
• Average origination fees were reported at $6,895 in 2023 data.

Finance: draft 13-week cash view by Friday.

Mr. Cooper Group Inc. (COOP) - Canvas Business Model: Revenue Streams

You're looking at the core ways Mr. Cooper Group Inc. brings in money, which is critical for valuing a servicer, especially one in transition like this one was in late 2025. Honestly, the revenue streams are heavily weighted toward the servicing side, which is what you'd expect from the nation's largest servicer.

The Total Trailing Twelve Month (TTM) revenue is approximately $3.09 Billion USD as of late 2025. This top-line number reflects the combined strength of their recurring servicing business and their transactional origination activity.

Here's a breakdown of the key components that make up that total revenue picture, focusing on the most recent available data points:

• Mortgage Servicing Fees (core, recurring revenue)
• Originations Segment Income (gain-on-sale, Q2 2025 pretax income of $64 million)
• Subservicing fees from institutional clients
• Interest income from MSRs and custodial accounts

The core, recurring revenue from servicing is the bedrock here. For the TTM ending June 2025, the Net Service Related Revenue was $1.74 Billion. This is the money generated from managing the loans, which is far more stable than the origination side.

To give you a clearer picture of the revenue mix based on TTM data ending June 2025, look at this:

The Originations Segment, which is more about the gain-on-sale when they close a loan, delivered pretax income of $64 million in the second quarter of 2025. That quarter, they funded about $9.4 billion in loans. This segment's income is less predictable, depending on market refinancing activity and purchase demand.

Subservicing fees from institutional clients are a significant, capital-efficient part of the servicing engine. While a precise fee number is hard to isolate, the scale is massive; the subservicing unpaid principal balance (UPB) was near $780 billion at the end of Q1 2025, and the total servicing portfolio reached $1,509 billion by the end of Q2 2025. The servicing segment's pretax operating income for Q2 2025 was $332 million, showing the profitability of that entire servicing base.

Interest income from MSRs (Mortgage Servicing Rights) and custodial accounts is another layer. For the second quarter of 2025 specifically, the reported interest income was $217 million, which was offset by $217 million in interest expense. This suggests the net impact from interest on the balance sheet assets was neutral for that quarter, but the gross interest income is a definite component of the overall cash flow.

Finance: draft 13-week cash view by Friday